Helping a Parent Retire Successfully

Recently I was asked by an adult child, “How can I help my parents better prepare for retirement?  I’m concerned they may not be considering their options.”

After thinking about the request, my observation and advice is as follows:

• Adult children can help their parents prepare for retirement by initiating open communication and guiding them through financial and life planning.

• Initiate open and empathetic conversations. Start discussions when parents are in their 50’s or 60’s. Approach the topic by stating you want to ensure their long-term comfort and security. Suggest working with a certified financial advisor to objectively map out assets, debts, and projected expenses.

• Help examine pension programs (i.e. CPP, OAS, GIS in Canada or Social Security in the U.S.) to ensure they claim everything they qualify for.

• Help parents understand and act concerning power of attorney and wills and health directives. Encourage them to name a trusted contact or family member on their banking and investment accounts. Assist them in navigating supplemental health insurance, Medicare/Medicaid, or long-term care options.

• Encourage parents to create a realistic vision of retirement including identifying needs and wants (i.e. social life, financial security, health, personal and spiritual development, and leisure).

• Ask about legacy.  At the end of life what will they be proud about? What will they be remembered for? What will they be doing or not doing that makes them successful in retirement? (i.e. positive attitude, a realistic dollar amount to fund their visualized lifestyle, creating a balance leisure lifestyle, health and wellness plan, identifying  purpose, etc.).

• Helping draft a vision which is clear and understandable. A vision with a primary focus, that reflects their values, beliefs, and philosophy, and is attainable.

• Involve a professional: Gift or coordinate a session with a retirement coach, one who provides insights and lessons on making a successful transition from work to retirement.

• To ensure your parents’ financial and lifestyle goals remain aligned with reality, discuss their retirement vision at least once a year, or immediately when major life milestones occur. Continue to provide encouragement throughout their planning and implementation time periods.

Remember, by helping parents identify a clear concept of what makes for a well-rounded, holistic, happy, and stimulating retirement, you are demonstrating caring. Your actions help them better prepare for both their early years of retirement (Go-Go years), plus actions designed for their later retirement years: the Slow-Go and No-Go years.

Your parents can sit and wait for whatever comes along, or you can help them tackle the challenges and opportunities of retiring successfully. It’s now for your parents (and you) to explore their future as a retiree.

For additional information on retirement preparedness, read: Retirement: The Ultimate Life Journey. A navigational guide for life after work.  Available in print and e-book formats at Amazon Books.